CHAPTER 9 - 142 Chapter 9 CHAPTER 9 MULTIPLE CHOICE ANSWERS...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 142 Chapter 9 CHAPTER 9 MULTIPLE CHOICE ANSWERS AND SOLUTIONS 9-1: d Deferred gross profit, Dec. 31 (before adjustment) P1,050,000 Less: Deferred gross profit, Dec. 31 (after adjustment) Installment accounts receivable, Dec. 31 P1,500,000 Gross profit rate ____ 25% __375,000 Realized gross profit, 2008 P 675,000 OR Installment Sales (P1,050,000 25%) P4,200,000 Less: Installment account receivable, Dec. 31 __1,500,00 Collection P2,700,000 Gross profit rate ___X 25% Realized gross profit, 2008 P 675,000 9-2: a 2006 2007 2008 Deferred gross profit, before adjustment P7,230 P 60,750 P 120,150 Deferred gross profit, end 2006 (6,000 X 35%) 2,100 2007 (61,500 X 33%) 20,295 2008 (195,000 X 30%) ___58,500 Realized gross profit, December 31, 2008 P5,130 P 40,455 P 61,650 (Total P107,235) 9-3: c Deferred gross profit balance, end P 202,000 Divide by Gross profit rate based on sales (25% 125%) ____ 20% Installment Accounts Receivable, end P1,010,000 Collection ___440,000 Installment Sales P1,450,000 9-4: b Sales P1,000,000 Cost of installment sales __700,000 Deferred gross profit P 300,000 Less: Deferred gross profit, end Installment accounts receivables, 12/31 (1,000,000-400,000) P 600,000 Gross profit rate (300,000 1,000,000) ___X 30% __180,000 Realized gross profit P 120,000 Operating expenses ___80,000 Operating income 40,000 Interest and financing charges __100,000 Net income P 140,000 Installment Sales 143 9-5: a Market value of repossessed merchandise P 30,000 (before reconditioning cost) Less: unrecovered cost Unpaid balance (80,000-30,000) P 50,000 Less: Deferred gross profit (50,000X20%) ___10,000 __40,000 Loss on repossession (P 10,000) 9-6: a Installment sales P1,000,000 Less: collection on installment sales __200,000 Installment account receivables, 12/31/08 800,000 Gross profit rate (500,000 1,000,000) ___X 50% Deferred gross profit, 12/31/08 P 400,000 OR Deferred gross profit (1,000,000-500,000) P500,000 Less: Realized Gross Profit (200,000 X 50%) _100,000 Deferred gross profit, 12/31/08 P400,000 9-7: d Fair value of repossessed merchandise P120,000 Less: unrecovered cost Unpaid balance P 200,000 Less: Deferred gross profit (200,000 X 32.5%) ___65,000 _135,000 Loss on repossession (P 15,000) 9-8: b Realized gross profit: Collections: Downpayment P 35,000 Installment received (205,000-200,000) ___5,000 Total 40,000 Gross Profit Rate (150,000 240,000) _X 62.5% Realized gross profit P 25,000 Gain (loss) on repossession: Appraised value of repossessed merchandise P165,000 Less:unrecovered cost unpaid balance P 200,000 less: deferred gross profit (200,000 X 62.5%) __125,000 __75,000 Gain on repossession P 90,000 144 Chapter 9 9-9: b Sch.1 Applying Applying Balance to to of Date Collection Interest principal principal Apr-1 P7,000.00 Apr-1 750 750.00 6,250.00 May-1 625 125.00 500.00 5,750.00 Jun-1 625 115.00 510.00 5,240.00 Jul-1 625 104.80 520.20 4,719.80 Aug-1 625 __94.40 ___530.60 4,189.00 P439.20 P2,810.80 Gain (loss) on repossession:...
View Full Document

This note was uploaded on 12/04/2010 for the course BSA ge103 taught by Professor Santos during the Spring '10 term at Edison College.

Page1 / 22

CHAPTER 9 - 142 Chapter 9 CHAPTER 9 MULTIPLE CHOICE ANSWERS...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online